Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/144610
Authors: 
Schmitt, Stefanie Yvonne
Year of Publication: 
2016
Series/Report no.: 
BERG Working Paper Series 114
Abstract: 
This paper proposes a model of attention allocation in decision-making. Attention has various definitions across the literature. Here, I understand attention as selecting information for costly processing. The paper investigates how an agent rationally allocates attention. The resulting attention allocation is context-dependent and influences choice quality. Next to inattention, two strategies of allocating attention prevail. These strategies share similarities with bottom-up and top-down attention - concepts reported in the psychological literature. Exploring firms' strategic considerations reveals an incentive for firms to produce high quality and highlight quality, if consumers expect low quality, and to exploit consumers by producing low quality and shrouding quality, if agents expect high quality.
Subjects: 
rational attention
information-processing
decision-making
shrouding
JEL: 
D10
D03
D81
D83
L15
ISBN: 
978-3-943153-33-0
Document Type: 
Working Paper

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